First-year peak report received

519TH MEETING, JUNE 22, 2018
At its June meeting, Council received the results of the first year of operation of the Practice Evaluation and Knowledge (PEAK) program. As of April 30, 2018, 27,283 licence holders (33 per cent of all licence renewals) completed at least the first element of the PEAK program, the practice declaration. Approximately 93 per cent of those practitioners completed the practice evaluation questionnaire and received a recommended number of hours of continuing knowledge activity. Of those who received a recommendation, 23 per cent have reported some continuing knowledge activities.

The second year of the program began on April 2, 2018, and the report included improvements and planned activities for the year and recommended planning for the third year begin immediately so the cost of the program operation and improvement can be included in the 2019 budget, which will be reviewed at Council’s September meeting. No recommendation was made to move forward with a referendum to make the program mandatory. 

Council has approved assumptions to guide development of PEO’s 2019 operating and capital budgets. The operating budget is to be balanced, with no increase in fees for the 10th consecutive year. Net growth for full-fee professional engineers is assumed to be 1 to 1.5 per cent, while retirees and partial fee members are assumed to increase by 3 to 4 per cent. The Financial Credit Program is expected to continue, impacting EIT and P.Eng. application fee revenues. Investment income in 2019 is not predicted over the next 12-month cycle, but, given the expected increase in interest rates in the foreseeable future, returns over 4 per cent are unlikely (the return in 2017 was 4.16 per cent). Salaries are expected to increase by 3.5 per cent, comprising a consumer price index adjustment of 2.5 per cent and a 1 per cent merit pool. Non-labour expenses are assumed to increase at the forecast inflation of 2.5 per cent, and all programs will be subject to evaluation. Chapter spending may vary outside the range of the forecasted inflation rate, depending on a review of chapter business plans, chapter bank balances and regional business demands. Council will have an opportunity at its September meeting to review a draft budget, subject to approval in November.